All Forum Posts by: Melanie L.

Sorry to revive a dead thread but I'm in a similar situation. I am closing on a property I purchased from my family (living in and managing somewhat for 5 years before the sale). 2 tenants have been there 10 plus years at $800 a month no leases. They never complain, pay early and cause no problems and don't complain even though condition of property hasn't been kept up. Both single people in their 50's.

The market value on the same rentals is $1200 - 1400. Mind you to turn over the rentals and get $1200 I will prob have to spend $5000 in renovations on each unit. So I don't want to lose them or my $800 a month!! And I don't want to take 3 years to get close to market value.

I'd love to here any suggestions.

Hey gentleman! I am actually looking for some local li opinions and thought this would be a good place to go!

Here is my post from another forum:
I am hoping for some advice on a deal I am considering. I have the opportunity to purchase rental properties from a family members estate. I currently live in one of the rentals and have essentially been managing the properties for discount rent since the family members death 2 years ago.

The properties are in Long Island, New York they are appraised for $400-425k it is 2 -2 family homes on 1 deeded property. The condition is rundown mostly due to delayed maintenance, homes are over 100years old.. Needs over all updating. few major repairs are replacement of original windows in 1 home and converting to gas in other home.

2 apartments are currently rented to model tenants who have been there 10years but do not complain about lack of Maintance and repairs. One is empty and I live in the other.

The deal we are negotiating is $380k
With windows replaced prior to closing
Sellers pay closing cost 15-20k in ny
Taxes are 14k

Rent estimates from appraiser are $1200 - 1400 for each unit.
2 long term tenants are paying $800!! Rent never raised and all month to month with no leases.

I'm sure you all have opinions and I would love to hear them all!! I know the houses well because I spent my summer since my teens working on the properties and now living it it. It is a rental neighborhood. Mostly middle class and rentals are rarely vacant and completion for apartments is stiff.

Curious what some locals think since it seems like many of the formulas used by others would never fly on li

It's now owned by an estate that needs to liquidate to pay beneficiaries.

I qualify for an owner occupied fha so it's very little down and a low rate... Even at the current price.... The current low rents would cover total monthly PITI. I have the cash reserves and I am in the process of getting estimates for repairs, negotiating the sale price by say 20k gets me about $100 less in monthly payment.

Thank you!

What would be a good deal in your perspective?

Thanks for the response! The appraisals were done a few months ago and are based on the current condition... They would be much more valuable if in better condition. New York is a tough market single family homes in the same area and condition are selling at 200 - 300k. There are no properties like it so its hard to comp.

I'm thinking about 5-7k to turn over each unit (update kitchens bath flooring).
7k to update heating in the one house. There is lots of other things I would like to do but are not necessary. Brand new roof, window in one all relatively new heating electric etc.
not a flip but a long term investment.

Most rental property formulas do not work here in li because the high cost of living. If you follow most of them no one would have a house here.

Family is negotiable just need an idea of where I should be at.

I am hoping for some advice on a deal I am considering. I have the opportunity to purchase rental properties from a family members estate. I currently live in one of the rentals and have essentially been managing the properties for discount rent since the family members death 2 years ago.

The properties are in Long Island, New York they are appraised for $400-425k it is 2 -2 family homes on 1 deeded property. The condition is rundown mostly due to delayed maintenance, homes are over 100years old.. Needs over all updating. few major repairs are replacement of original windows in 1 home and converting to gas in other home.

2 apartments are currently rented to model tenants who have been there 10years but do not complain about lack of Maintance and repairs. One is empty and I live in the other.

The deal we are negotiating is $380k
With windows replaced prior to closing
Sellers pay closing cost 15-20k in ny
Taxes are 14k

Rent estimates from appraiser are $1200 - 1400 for each unit.
2 long term tenants are paying $800!! Rent never raised and all month to month with no leases.

I'm sure you all have opinions and I would love to hear them all!! I know the houses well because I spent my summer since my teens working on the properties and now living it it. It is a rental neighborhood. Mostly middle class and rentals are rarely vacant and completion for apartments is stiff.